blem #3 (15 points) October 1, Benji\'s Bicycle Store had an inventory of 20 ten
ID: 2520753 • Letter: B
Question
blem #3 (15 points) October 1, Benji's Bicycle Store had an inventory of 20 ten speed bicycies at a cost of $200 ch. During the month of October, the following transactions occurred t 4 Purchased 30 bicycles at a cost of $200 each from Monroe Bicyole Company, terms 1/10, n/30 6 Sold 18 bicycles to Team Wisconsin for $330 each, terms 2/10, n/30 7 Received credit from Monroe Bicycle Company for the return of 2 defective bicycles 13 Issued a credit memo to Team Wisconsin for the return of a defective bicycle 14 Paid Monroe Bicycle Company in full, less discount Instructions Prepare the journal entries to record the transactions assuming the company uses a perpetual nventory system October 7 journal entry October 14journal entryExplanation / Answer
JOURNAL ENTRIES IN BENJI'S BICYCLE
DATE PARTICULARS DEBIT CREDIT
OCT 4 Inventory(purchase) A/c dr $ 6000
To Monroe bycycle company A/c $ 6000
( Being Inventory purchase 30* $ 200)
OCT 6 Team wisconsin A/c dr $ 5940
To Inventory (Revenue) $ 5940
( Being Inventory sold 18*330)
OCT 7 Monroe bycycle company A/c Dr $ 400
To Invetory (return) $ 400
( return defective 2*200)
Oct 13 Inventory ( return) A/c Dr $ 330
To Team wisconsin A/c $ 330
( issue credit note for sale return)
Oct 14 Monroe bycycle company A/c Dr $ 5600
To Cash A/c $ 5544
To Discount A/c $ 56
( 1% discount 1/10 payment in 10 days )
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